Azerbaijan, Baku, 15 January / Trend corr. S.Babayeva / The credit culture is weak in Azerbaijan, Elchin Bagirov, the chairman of the Credit Union Association of Azerbaijan, believes.
"After receiving credit funds the credits are not returned on time and deposits are not injected," Bagirov said. He did not state the average figures on the delay of credit fund returns.
One of the problems of the credit unions of Azerbaijan is a lack of funds of many unions. Credit Unions, in particular, are operating at the expense of foreign loans due to the lack of stable deposits.
The Azerbaijani Credit Union Association was established in 2003. The aim of the Association is Оto lobby the interests of credit Unions, as well as development of Unions in the country. From 1 December 2007, the Association united 54 out of 78 unions. About 28,476 credits were allocated to 16,287 members of the Association in the amount of AZN 33mln.
The funds are allocated in line with the World Bank program, The Crediting and Development of Agriculture, Social Development of Internally Displaced Persons Fund and the National Fund to Render Assistance to Entrepreneurship at the Azerbaijani Economic Development Ministry and Agrarian Credit non-bank organization.